Rift Airlines’ operating costs are considerably higher than those of the competitor companies. The company, also, cannot reach the desired productivity level. Unless its operating costs decline, company cannot compete with other organizations that operate at very low costs. The company is spending too much for the employees. Other expenditures are rather high so the managers have to think about a way to reduce the costs and to increase the productivity. 2.
Armstrong suggests reducing the number of flight crew and expanding the job duties to be performed by reducing cleaning staff and lower cost. Linda says that the way of increasing the quality of their management is making the bureaucracy slower and not resisting to the changes. Jeff Davis suggests firing the employees from New Zealand and the Philippines. 3.
One of the suggestions is reducing the number of flight crew. It can be a logical way of reducing cost, for salary will reduce. Other employees work in a better way since they can be scared of termination. Each employee has more responsibilities and they need to improve themselves in a preferable way. In addition to these positive effects, there are some negative impacts. The company loses its truth toward employees. Its prestige can be influenced negatively. Some qualified employees are not able to desire working at this company. Service can be delayed because of the number of insufficient employees. Therefore, guest satisfaction can decrease. Another suggestion is expanding the job duties to be performed by reducing cleaning staff and lower cost. Business efficiency increases. Qualified and multi-tasked employees have more responsibilities. This can be lead to raise the quality of company. Sharing can be also increasing among employees. Its negative impacts are that excessive work for employees increase cost of work force. If the employees do not offer the necessary effort to work, it can be consisted of bad results, for example,...
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